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Flow Rates Beat Expectations

15th Oct 2008 11:13

RNS Number : 8890F
Rift Oil PLC
15 October 2008
 



For immediate release

15 October 2008

Rift Oil plc

("Rift")

Puk Puk-1 - Rift flows gas at 71mmcf/d

 

Rift Oil PLC (AIM : RIFT), the oil and gas exploration company with assets in Papua New Guinea ("PNG") is delighted to announce that the tested flow rate from all three productive zones at Puk Puk-1 has been measured at 71 mmcf/d. This follows the previous advice of gas flow of 29.2 mmcf/d at the combined Toro and Lower Hedinia pay intervals. Additional tests on condensate levels and composition continue, with condensate levels appearing lower than earlier expectations.

Seismic testing over 210 km is now complete with encouraging early results. 

 During production testing of the Puk Puk-1 exploration well, hydrocarbon gas flowed at a combined rate from three gas bearing reservoirs of 71 million standard cubic feet of gas per day (mmcf/d). The rates from the individual reservoirs were separately tested and were restricted by downhole equipment constraints. The Toro Sands Reservoir tested at 29.5 mmcf/d with 1252 psi surface flowing pressure on a 64/64ths choke from 12 metres of perforations, the Upper Hedinia reservoir tested at 22.8 mmcf/d with 1634 psi surface flowing pressure on a 54/64ths choke from 7 metres of perforations, and the Lower Hedinia reservoir tested at 18.8 mmcf/d with 1931 psi surface flowing pressure on a 42/64ths choke from 11 metres of perforations.

Summary of Current Position

Rift is in discussions with a number of strategic partners to fund the continuing testing and pre-production expenses. As previously announced in September, heads of agreement have been signed with Flex LNG for gas sales to a floating liquefaction plant and preliminary discussions with Rio Tinto Alcan ("Alcan") have followed the signing of a Memorandum of Understanding between the companies in 2007. 

Discussions with other potential partners are at a preliminary stage, but are encouraging. 

Ian Gowrie-Smith, Chairman, commented:

"These results show the extent of our gas resources at Puk Puk-1 greatly exceeds our expectations. These flow rates give Rift added comfort that these discoveries can be successfully commercialised."

Peter Mikkelsen FGS, AAPG, meets the criteria of a qualified person under the AIM guidance note for mining, oil and gas companies and has reviewed and approved the technical information contained in this announcement.

Further enquiries:

Rift

David Lees, Ian Gowrie-Smith

020 7340 9970

Buchanan Communications

Tim Anderson, Isabel Podda

020 7466 5000

RBC Capital Markets

Andrew Smith, Sarah Wharry

020 7653 4804

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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